Amazon Hired Ex-Trader Joe's Employee to Replicate Products for Wickedly Prime Brand, WSJ Reports

By Leira Aquino

Apr 15 2024, 03:01 AM EDT

trader joe's — A recent Wall Street Journal's report disclosed that Amazon purportedly pressured a former Trader Joe's employee to share data about the grocer's best-selling products. Ethan Miller/Getty Images

Retail giant Amazon is facing scrutiny after a recent report by The Wall Street Journal revealed that the company allegedly pressured an ex-Trader Joe's employee to provide data on the grocer's top-selling products.

The information was intended to be used for Amazon's private-label food brand, Wickedly Prime, raising concerns about the misuse of proprietary information and competitive practices.

Former Trader Joe's Employee Allegedly Pressured by Amazon

The incident dates back to 2016 when Amazon launched Wickedly Prime, a brand offering a range of food and snacks such as roasted cashews and garlic mustard aioli.

Seeking to replicate the success of Trader Joe's, Amazon hired a former senior manager from Trader Joe's snack foods division. However, the employee was not initially informed of her role in creating a product line for Amazon's private label.

According to The Wall Street Journal, Amazon's goal was to replicate Trader Joe's top 200 items, a task complicated by the grocer's guarded approach to its data.

The report details how an Amazon manager relentlessly pursued the ex-Trader Joe's employee for six months, demanding information on the grocer's bestselling products and profit margins.

The pressure culminated in a confrontational exchange where the manager allegedly yelled at the employee, insisting, "You just have to give us the data!"

The employee, under immense pressure, eventually provided sales data but refused to share profit margin information.

Amazon Reiterates Commitment to Data Ethics Amid Misuse Allegations

Amazon's use of Trader Joe's data was short-lived, as another employee raised ethical concerns and reported the incident to Amazon's legal department. Subsequently, the employees involved were terminated.

In response to inquiries, an Amazon spokesperson emphasized the company's stance against the misuse of proprietary information

"We do not condone the misuse of proprietary confidential information, and thoroughly investigate any reports of employees doing so and take action, which may include termination," the spokesperson told Business Insider.